Correlation Between Performance Food and Celsius Holdings

Can any of the company-specific risk be diversified away by investing in both Performance Food and Celsius Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Performance Food and Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Performance Food Group and Celsius Holdings, you can compare the effects of market volatilities on Performance Food and Celsius Holdings and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Performance Food with a short position of Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Performance Food and Celsius Holdings.

Diversification Opportunities for Performance Food and Celsius Holdings

0.23

Correlation Coefficient

Performance Food  Celsius Holdings

Modest diversification

The 3 months correlation between Performance and Celsius is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Performance Food Group and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings and Performance Food is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Performance Food Group are associated (or correlated) with Celsius Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celsius Holdings has no effect on the direction of Performance Food i.e., Performance Food and Celsius Holdings go up and down completely randomly.

Pair Corralation between Performance Food and Celsius Holdings

Given the investment horizon of 90 days Performance Food Group is expected to generate 0.33 times more return on investment than Celsius Holdings. However, Performance Food Group is 2.99 times less risky than Celsius Holdings. It trades about -0.04 of its potential returns per unit of risk. Celsius Holdings is currently generating about -0.11 per unit of risk. If you would invest  9,932  in Performance Food Group on August 19, 2025 and sell it today you would lose (424.00) from holding Performance Food Group or give up 4.27% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

Performance Food Group  vs.  Celsius Holdings

Performance Food

Risk-Adjusted Performance

Weakest

Over the last 90 days Performance Food Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Performance Food is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Celsius Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Celsius Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in December 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Performance Food and Celsius Holdings

The main advantage of trading using opposite Performance Food and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Performance Food position performs unexpectedly, Celsius Holdings can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Celsius Holdings will offset losses from the drop in Celsius Holdings' long position.

The idea behind Performance Food Group and Celsius Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.